Angel Investor

Angel Investors (a.k.a. Business Angels) are independent private investors who aim to finance and support businesses they believe in. They are one of the most important and impactful investors, especially in the early stages of a company. Most likely, they will own shares in the business in exchange for providing equity finances.

The main characteristics that define a business angel are:

  • they invest more than a day-to-day investor but less than a VC (around 100K).
  • they invest their own money taking into consideration the viability of the idea, expecting to get a return on their investment (ROI) in the future.
  • they make their own financing decisions.

Besides the investment-related characteristics, angel investors are an essential resource for any startup because they provide seed capital, bring their expertise and knowledge to the table, and stay close to the businesses, guiding and helping them in decision-making situations.